Virginia Estate Planning Attorneys

Minimizing Estate Tax Liability

Estate Planning and Tax Liability Reduction Attorneys of Fairfax and Northern VA

The estate planning lawyers of Fairfax's Hale Ball Carlson Baumgartner Murphy, PLC provide innovative ways for testators and personal representatives (executors) to reduce estate tax liability. Regardless of whether you are the principal of your estate and are looking for ways to transfer as much of your wealth to your loved ones as possible or you are an executor who is seeking to minimize the tax impact on the estate you are administering, the professional estate planning and probate attorneys of Hale Ball Carlson Baumgartner Murphy, PLC can assist you in minimizing the portion of the assets that the government can make a claim to. Contact our Fairfax office to discuss a tax-minimizing plan for your estate.

Estate Tax Liability Minimization in North Virginia

For smaller and medium sized estates, the tax exclusion $5.25 million for 2013 (and indexed to be inflation adjusted in future years) is sufficient to avoid the federal estate tax. Larger estates, however, face a current tax rate of 40% for any amount exceeding the exclusion.

One of the most common ways to reduce the estate tax impact is to avoid it altogether. That's why after a careful review of our clients' goals, our estate planning lawyers for large estates will sometimes recommend transferring some of the assets into an irrevocable trust. With this type of trust, the grantor transfers ownership of the assets into a trust and cedes control over them to a third party. Because the individual making the trust no longer owns the assets, if planned for properly, they are not counted as part of the estate at the time of death.

Another tax-minimizing strategy involves the valuation of fluctuating assets. The IRS allows executors to choose an alternate date within six months from the time of death for the purpose of asset valuation. What this does is allow for the selection of a date where assets were at a low point for the purpose of valuation. This can be tremendously useful when valuing stocks, bonds, or real estate if the market is in a state of decline.

Professional Estate Planning Lawyers for Prince William, Fairfax, and Fauquier

The attorneys of Hale Ball Carlson Baumgartner Murphy, PLC use these and other inventive ways to reduce the impact of federal estate taxation for our clients. With over thirty years of estate planning and probate law experience, the lawyers at Hale Carlson Baumgartner, PLC have established reputations as some of the Commonwealth of Virginia's foremost estate planners. To schedule an appointment at our Fairfax office, call 703-962-1164.

Hale Ball Carlson Baumgartner Murphy